Trade-Ideas LLC identified

Bon-Ton Stores

(

BONT

) as a strong on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Bon-Ton Stores as such a stock due to the following factors:

  • BONT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.6 million.
  • BONT has traded 407,345 shares today.
  • BONT is trading at 3.87 times the normal volume for the stock at this time of day.
  • BONT is trading at a new high 3.33% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize. In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on BONT:

The Bon-Ton Stores, Inc., through its subsidiaries, operates department stores in the United States. The company's stores offer brand-name fashion apparel and accessories for women, men, and children, as well as cosmetics, home furnishings, and other goods. The stock currently has a dividend yield of 8.3%. Currently there are no analysts that rate Bon-Ton Stores a buy, 2 analysts rate it a sell, and none rate it a hold.

The average volume for Bon-Ton Stores has been 298,400 shares per day over the past 30 days. Bon-Ton Stores has a market cap of $43.2 million and is part of the services sector and retail industry. The stock has a beta of 3.15 and a short float of 49.3% with 4.68 days to cover. Shares are down 67.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Bon-Ton Stores as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:

  • The debt-to-equity ratio is very high at 62.97 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.11, which clearly demonstrates the inability to cover short-term cash needs.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Multiline Retail industry and the overall market, BON-TON STORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • BON-TON STORES INC's earnings per share declined by 8.1% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, BON-TON STORES INC reported poor results of -$0.51 versus -$0.37 in the prior year. For the next year, the market is expecting a contraction of 64.7% in earnings (-$0.84 versus -$0.51).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed compared to the Multiline Retail industry average, but is greater than that of the S&P 500. The net income has decreased by 9.3% when compared to the same quarter one year ago, dropping from -$36.19 million to -$39.56 million.
  • Looking at the price performance of BONT's shares over the past 12 months, there is not much good news to report: the stock is down 86.41%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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